FREMONT, Calif. and TOKYO, Oct. 10, 2011 /PRNewswire/ -- Zosano Pharma, Inc. (Zosano) and Asahi Kasei Pharma Corporation (AKP) announced today that they have entered into a long-term strategic collaboration for the development, commercialization and supply of a weekly transdermal patch formulation of Teribone™ (teriparatide acetate), AKP's formulation of human parathyroid hormone (human PTH 1-34), for the treatment of osteoporosis patients with a high risk of fracture.

Under the terms of the agreement, AKP has received exclusive rights to develop and commercialize the transdermal patch formulation of Teribone™ in Japan, Korea, China and Taiwan. AKP is responsible for clinical and regulatory development and commercialization activities. The transdermal patch product uses Zosano's patented, clinically validated, and GMP manufactured microprojection technology (known as ZP Patch Technology) to administer human PTH (1-34) through the skin. It is expected to offer the benefits of self-administration, weekly dosing, room temperature stability, and pain-free delivery without the need for an injection.

The Agreement was signed on February 22, 2011, although AKP and Zosano agreed not to disclose the Agreement until the subcutaneous injection form of Teribone™ for osteoporosis patients was approved in Japan, which occurred on September 26, 2011. With the development of a microprojection patch formulation of Teribone™, AKP is further reinforcing both its R&D pipeline and its commitment to patients in the field of orthopedics, especially in the area of osteoporosis.

"AKP and Zosano have joined their world-class and complementary assets to create what we believe has the opportunity to be the best in class product for bone growth in severe osteoporosis patients," said Gail Schulze, Chief Executive Officer of Zosano. "We believe this relationship will provide a product with superior fracture reduction and enhanced patient compliance compared to the currently available PTH injectables to those patients with a high degree of unmet need."

As part of the agreement, AKP has paid Zosano $7.5 million in upfront consideration. In addition, AKP will pay over $25 million in milestone payments related to development, regulatory and launch accomplishments. Zosano will receive revenue-based royalties based on sales of the microprojection patch formulation of Teribone™ in the Asian territories, as well as reimbursement for all development and manufacturing costs. AKP is committing significant additional financial and technical resources toward the development of the patch for the treatment of osteoporosis in the Asian territories, and expects to begin clinical trials in Japan in 2012. AKP and Zosano plan to continue discussions regarding the extent of their strategic collaboration, including potential joint development of the patch in other territories.

"Our partnership with Zosano reinforces AKP's commitment to seek out innovative products that complement our existing portfolio in orthopedics and address significant unmet medical needs in Asia," said Toshio Asano, President and Representative Director of AKP. "We look forward to expanding the potential for Teribone™ in this novel, transdermal form as a convenient treatment for patients suffering from osteoporosis in the Asian territories."

About Osteoporosis

Osteoporosis is a debilitating disease that affects an estimated 75 million people in Europe, the U.S. and Japan. Osteoporosis is a disease in which the density and quality of bone are reduced. As bones become more porous and fragile, the risk of fracture is greatly increased. The most common fractures associated with osteoporosis occur at the hip, spine and wrist. The incidence of these fractures increases with age. Women with severe osteoporosis who have two or more previous fractures have up to a nine times greater risk of future fracture compared with women who have not suffered a previous fracture.

About Teribone™

Teribone™ is a human parathyroid hormone preparation that facilitates bone formation. A Phase III clinical trial in Japan demonstrated that, with weekly subcutaneous injections for 72 weeks, Teribone™ decreased the risk of developing new vertebral fracture1 by 78.6% compared to placebo treatment. The efficacy in inhibiting fracture is obtained by increasing bone strength with both improved bone quality and increased bone density. The subcutaneous injection form of Teribone™ for osteoporosis patients was approved in Japan on September 26, 2011.

About Zosano Pharma's ZP Patch Technology

Zosano's ZP Patch Technology is based on microprojections that deliver therapeutic compounds (including peptides, proteins, small molecules, and vaccines) to the skin's outer layer and provide rapid and efficient systemic drug delivery in a convenient, needle-free, and pain-free system. Zosano's ZP Patch Technology is the most clinically validated microneedle technology in the world, having been tested in more than 450 patients with over 20,000 patches successfully applied to humans in phase 1 and phase 2 clinical studies.

About Zosano Pharma

Zosano Pharma, Inc. is a private biopharmaceutical company and a pioneer in the field of drug delivery systems. Zosano is developing products using ZP Patch Technology, a novel transdermal delivery technology based on microprojections that provide rapid and efficient systemic delivery in a convenient, needle-free, and pain-free system. Zosano is a fully integrated development company with a recently launched cGMP manufacturing capability. Zosano is developing products with significant commercial potential both independently and in collaboration with strategic partners.

About Asahi Kasei Pharma

Asahi Kasei Pharma Corporation, headquartered in Tokyo, Japan, is a research-based healthcare innovator that discovers, develops, manufactures, and markets products for the pharmaceutical, diagnostics, and medical nutrition markets. Asahi Kasei Pharma is a wholly owned business unit of Asahi Kasei Corporation, a US$19 billion technology company that provides innovative, science-based solutions to a diverse range of markets including chemicals and plastics, apparel, housing and construction, healthcare, and electronics.